Global Factors influencing ASX stocks on 07 November 2023

On 07 November 2023, at AEDT 11:39 AM, the benchmark index S&P/ASX 200 is trading lower today, declining 23.80 points or 0.34%, and is currently trading at 6,973.60 levels. Out of 11 sectors, 6 are trading higher despite the decline in the S&P/ASX 200. The Utilities and Health Care sectors were the top 2 gaining sectors, up by 0.72% and 0.69% in their index values.

Also read: Mid-Market: S&P/ASX 200 Trading Lower By 0.23%; Investors Awaits RBA Monetary Policy Decision

On that note, let us look at a few global reasons impacting the stock market today:

1. Some of the key U.S. indices ended higher in their previous session. NASDAQ Composite, NASDAQ-100, Dow jones, and S&P 500 ended higher by 0.30%, 0.37%, 0.10%, and 0.18% respectively.

2. The Dow edged higher on Monday, restrained by a rebound in Treasury yields, particularly the 10-year Treasury yield, which climbed 11 basis points to 4.664%. Investors anticipated insights from Fed officials and corporate earnings releases later in the week, influencing market cautiousness despite the moderate uptick.

3. Efforts by China to stabilize the yuan played a role in the recent turmoil in money markets, according to insiders. Beijing's attempts to navigate its economy through a significant slowdown led to a scramble in short-term funding rates on October 31, reaching as high as 50% in certain cases. Authorities are currently investigating the incident.

4. According to a report by U.S. researchers at AidData, Chinese financial institutions provided US$1.34 trillion in loans to developing nations between 2000 and 2021. The study revealed a shift in China's lending focus from infrastructure to rescue funding. Although lending peaked at nearly US$136 billion in 2016, China continued to commit nearly US$80 billion in loans and grants in 2021. The data, encompassing approximately 21,000 projects across 165 low and middle-income countries, is considered one of the most comprehensive datasets of its kind.

5. The Hang Seng and FTSE 100 is up by 1.71% and 0.00%.

Customer Notice:

Nextgen Global Services Pty Ltd trading as Kapitales Research (ABN 89 652 632 561) is a Corporate Authorised Representative (CAR No. 1293674) of Enva Australia Pty Ltd (AFSL 424494). The information contained in this website is general information only. Any advice is general advice only. No consideration has been given or will be given to the individual investment objectives, financial situation or needs of any particular person. The decision to invest or trade and the method selected is a personal decision and involves an inherent level of risk, and you must undertake your own investigations and obtain your own advice regarding the suitability of this product for your circumstances. Please be aware that all trading activity is subject to both profit & loss and may not be suitable for you. The past performance of this product is not and should not be taken as an indication of future performance.

Kapitales Research, Level 13, Suite 1A, 465 Victoria Ave, Chatswood, NSW 2067, Australia | 1800 005 780 | info@kapitales.com